Guest Article written by Tony Vitacca – Director, GO Salary
Let’s make 1 April 2021 the start of a happy new year.
The salary packaging limits ‘re-set’ every 12 months. This creates opportunity.
First, if you have not maximised your salary package for 20/21, you have until 31 March 2021 to do so. For most not-for-profits, that’s $15,900 for household expenses and $2,650 for meal entertainment.
From 1 April 2021, you have a fresh start, giving you 12 months to receive your full salary packaging entitlement. But, if you are leaving your employment earlier (say, taking 12 months maternity leave from 30 June), you can actually maximise your salary package up until the date you leave. Ask your employer and salary packaging provider.
Speaking of providers, 1 April is the easiest time to transition to a new provider says Tony Vitacca, Director, GO Salary. “I have transitioned literally hundreds of clients over the past 25 years, so we know how to make it easy” said Tony. “The advantage of transitioning 1 April is that we have a fresh start. It can be done quick and easy” explained Tony.
|Warning. Tony warns that next FBT year may not be a happy one for every charity. He says “ 1 April 2021 and 31 March 2022 are both a Thursday. So, for many charities they will have 27 pays in the next FBT year. I’ve seen it many times where charities exceed their salary packaging limits by not adjusting for the new FBT year. I’d be concerned if your salary packaging provider has not already raised this issue”. “Fortunately, we are all across 27 pay issue”, Tony added.|
When asked about the impact of COVID-19 on salary packaging, Tony explained that the government has actually relaxed the rules. “For example, if your local pub, café or restaurant offered dine-in meals, you can now purchase take-away meals from these venues. You can even use delivery services such as Deliveroo, Menulog and Uber Eats” said Tony. Tony also recommended that you spend your meal card balances by 1 April, as balances carry forward reduce your entitlements the following year.
Can we talk to GO Salary? “Yes of course” says Tony. “Contact myself or Ben on (03) 9955 7380 or visit gosalary.com.au. Our aim is for every employee to get the best out of salary packaging” remarked Tony.